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SDR compensation plans to consider for 2023
quotapath.com
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In my first role as a BDR, I earned variable pay based on the Qualified Opportunity plan. My team and I had a quarterly quota that entailed bringing in nine qualified opportunities. Those nine opportunities could fall into two categories: Stage One and Stage Two, and we had to bring in five and four opportunities, respectively. “My company defined Stage One opportunities as prospects we booked for a meeting who qualified to buy the product according to budget, need, integration capability, and buy-in from the decision maker.” Stage Two entailed everything from Stage One with the addition of another meeting booked to move the conversation forward. At the handoff between the SDR and the account executive (AE), the AE would then classify which stage the opportunity falls under.
My company defined Stage One opportunities as prospects we booked for a meeting who qualified to buy the product according to budget, need, integration capability, and buy-in from the decision maker. “Stage Two entailed everything from Stage One with the addition of another meeting booked to move the conversation forward.” Qualified Bonus Opportunity
In 2015, I moved to Austin, TX, to start my career in tech sales. I worked at a large Fortune 500 company in an entry-level position role as a Business Development Representative (BDR). “BDRs, also referred to as sales development reps (SDR) or market development reps (MDR), do the grunt work.” In my first role as a BDR, I earned variable pay based on the Qualified Opportunity plan. My team and I had a quarterly quota that entailed bringing in nine qualified opportunities. Those nine opportunities could fall into two categories: Stage One and Stage Two, and we had to bring in five and four opportunities, respectively.
According to Garner, the conversion rate of a qualified opportunity from an SDR to a Closed/Won deal should be at least 20%. “At that conversion rate and paired with this compensation structure, the SDR will focus on generating qualified leads and gain an extra kicker upon those leads closing.” Winning the deal leans entirely on the AE — not the SDR. So, if an SDR hits 100% of their qualified opportunities quota, anything they make on top of that from a closed/won deal is the cherry on top!
One of the upsides of the plan, however, is the potential for lucrative payouts. “Example: If the SDR’s monthly quota is $50,000 at a payout of 5% of all closed/won deals, that’s $2,500 a month if they hit goal.” So, what happens when an SDR brings an AE multiple qualified leads, but the conversion rate to closed/won is 5%? The answer is in the next paragraph…
Winning the deal leans entirely on the AE — not the SDR. So, if an SDR hits 100% of their qualified opportunities quota, anything they make on top of that from a closed/won deal is the cherry on top! “Here’s an example: If an SDR hits 100% of her quarterly quota, she earns $5,950 for the quarter. That’s $2,975 from seven qualified opportunities at $425 each, plus an additional $2,975 from a quarterly quota of $175K in closed/won opportunities paid at 1.7%.” Not bad. Not bad at all.